One-glance verdict
Undervalued
$13.61 our estimate vs market $1.90
Wall Street consensus: $3.91 (-71.2% lower than our fair-value estimate)
86% below our estimate, below the bear case
Fundamentals snapshot
Opendoor Technologies Inc.
OPEN · NMS · Real Estate · Real Estate Services
Current price
$1.90
52-week range
$1.83 - $9.46
Market cap
$1.85B
Balance sheet
Distressed
-2.11x Concerning
Net debt $1.07B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 4/10 years.
- Risk Return on equity was -196.9% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -5.5% to -15.9% over 3 years.
- Risk Insider ownership is only 4.9% (peer median: 5.5%).
What this company does
Opendoor Technologies Inc.
Opendoor Technologies Inc. is a company that makes buying and selling homes easier by using an online platform. They mainly make money by buying homes from people who want to sell fast, fixing them up a bit, and then reselling them to new buyers, making a profit on the difference. This "iBuying" model helps them control the process and potentially capture more of the sale price, unlike traditional real estate agents.
How the company got here
Opendoor Technologies Inc. was founded in 2014 with the goal of simplifying the process of buying and selling homes. The company's journey began with a focus on leveraging technology to make real estate transactions more efficient and transparent. Early on, Opendoor raised significant venture capital funding, which allowed it to expand its operations and develop its iBuying platform. A key turning point was its merger with Social Capital Hedosophia Holdings Corp. II in 2020, which led to its public listing on the NASDAQ stock exchange. This move provided the company with greater capital and visibility, enabling further growth and service expansion.
What it actually does
Opendoor operates a digital platform that aims to make buying and selling homes easier and faster. Think of it like an online marketplace specifically for houses. Instead of the traditional way of listing a home with an agent and waiting for offers, Opendoor allows homeowners to get an instant cash offer on their property. For buyers, it offers a streamlined way to find and purchase homes. The company uses technology and data analysis to assess home values and manage the entire transaction process, from offer to closing.
Sell to Opendoor
This is Opendoor's main business. Homeowners who want to sell their house can get a cash offer directly from Opendoor. The company then buys the home, makes any necessary repairs or updates, and then resells it on the market. This service is attractive to people who want a quick and convenient sale, avoiding the typical uncertainties and delays of a traditional home sale. Opendoor makes money on the difference between what it pays for the home and what it sells it for, plus any fees charged to the seller.
List with Opendoor
This part of Opendoor's business works with traditional real estate agents. If you want to sell your home but prefer to list it on the open market with an agent, Opendoor offers a service to connect you with a partner agent. This allows sellers to leverage the expertise of local real estate professionals while still benefiting from Opendoor's network and potentially other services. It's a way for Opendoor to engage with sellers who might not opt for a direct sale to the company.
Opendoor Marketplace
Opendoor Marketplace is a more 'capital-light' approach, meaning it doesn't involve Opendoor buying and holding as much inventory. Instead, it acts as a platform to connect home sellers with a wider range of buyers, including both large institutional investors and individual buyers. This segment aims to facilitate transactions without Opendoor taking on the full risk of purchasing and reselling the property itself, focusing more on the transaction facilitation and network effects.
Ancillary Services
Beyond buying and selling homes, Opendoor offers a suite of related services to make the homeownership journey smoother. These include services like title insurance and escrow, which are crucial for finalizing real estate transactions. They also offer mortgage solutions through Opendoor Home Loans, helping buyers secure financing. Additionally, Opendoor provides home repair services and property and casualty insurance, creating multiple revenue streams and a more comprehensive offering for their customers.
What management is betting on now
Opendoor's current strategy, often referred to as 'Opendoor 2.0,' is focused on improving efficiency and profitability. Management is emphasizing the use of artificial intelligence (AI) to streamline operations and enhance pricing accuracy. They are also focusing on a 'capital-light' product called Cash Plus, which aims to reduce the amount of money Opendoor needs to tie up in properties. The company is also working on expanding its U.S. footprint and strengthening its partnerships, all with the goal of increasing transaction volume and improving profit margins on each sale.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$56.00M
FY2024 Q4
$-83.00M
FY2025 Q1
$-283.00M
FY2025 Q2
$821.00M
FY2025 Q3
$432.00M
FY2025 Q4
$67.00M
FY2026 Q1
$-250.00M
FY2026 Q2
$-723.00M
Revenue
$883.00M
Net income
$-162.00M
Diluted EPS
-0.17
Operating cash flow
$-718.00M
Free cash flow
$-723.00M
Fetching…
Sources
Revenue
$720.00M
Net income
$-173.00M
Diluted EPS
-0.18
Operating cash flow
$-246.00M
Free cash flow
$-250.00M
Fetching…
Sources
Revenue
$736.00M
Net income
$-1.10B
Diluted EPS
-1.42
Operating cash flow
$70.00M
Free cash flow
$67.00M
Fetching…
Sources
Revenue
$915.00M
Net income
$-90.00M
Diluted EPS
-0.12
Operating cash flow
$435.00M
Free cash flow
$432.00M
Fetching…
Sources
Revenue
$1.57B
Net income
$-29.00M
Diluted EPS
-0.04
Operating cash flow
$823.00M
Free cash flow
$821.00M
Fetching…
Sources
Revenue
$1.15B
Net income
$-85.00M
Diluted EPS
-0.12
Operating cash flow
$-279.00M
Free cash flow
$-283.00M
Fetching…
Sources
Revenue
$1.08B
Net income
$-113.00M
Diluted EPS
-0.16
Operating cash flow
$-80.00M
Free cash flow
$-83.00M
Fetching…
Sources
Revenue
$1.38B
Net income
$-78.00M
Diluted EPS
-0.11
Operating cash flow
$62.00M
Free cash flow
$56.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $13.61 vs current price $1.90
Wall Street consensus is the average analyst price target: $3.91 (-71.2% lower than our fair-value estimate).
Our most-likely fair value is $13.61 a share — about 616.5% above today's price of $1.90, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $1.1B. Interest coverage -2.1x.
Net debt
$1.07B
Interest coverage
-2.11x
Opendoor Technologies Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
OPEN
BASELINE
Opendoor Technologies Inc.
Total debt $1.96B Interest coverage -2.11x This is the baseline the peer rows are being compared against.
Total debt $558.00M Interest coverage -1.78x Neither company has much profit cushion over interest right now.
Total debt $4.11B Interest coverage -3.13x Neither company has much profit cushion over interest right now.
Total debt $113.56M Interest coverage -2.49x Neither company has much profit cushion over interest right now.
What you should know
The case for and against OPEN
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 4/10 years.
Risks
-
Return on equity was -196.9% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -5.5% to -15.9% over 3 years.
-
Insider ownership is only 4.9% (peer median: 5.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-90.13x
P/B
2.01x
P/S
0.57x
EV/EBITDA
-6.12x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
8.6%
Operating margin
-15.9%
Net margin
-46.7%
ROE
-196.9%
ROA
-10.9%
Health
Liquidity and balance-sheet strength
Debt / equity
2.15x
Current ratio
2.94x
Quick ratio
0.93x
Total debt
$1.96B
Total cash
$896.00M
Growth
How the business has been compounding
Revenue TTM
$3.25B
Revenue 5Y CAGR
-14.1%
EPS TTM
-1.89
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-459.00M
Free CF TTM
$1.04B
FCF margin
31.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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